A crypto trader designated Dr6s2o on Solscan lost more than $473,000 in just 20 minutes after former New York City mayor Eric Adams promoted a new meme coin called $NYC that rapidly collapsed in what many investors are now calling a rug pull.
Specifically, the trader first swapped a total of 745,725 USDC for $NYC across five trades and then panic-sold the meme coin for only 272,177 of the stablecoin.
The six $NYC trades that resulted in the loss of approximatelly $473,000. Source: SolscanWhat is the NYC token?
Late on January 12, Adams – whose administration was previously under scrutiny for alleged corruption – announced the launch of $NYC – the ‘NY token’ – with an unconventional sales pitch.
Specifically, the X post urging followers to invest explained that the cryptocurrency was ‘built to fight the rapid spread of antisemitism and anti-Americanism across this country and now in New York City.’
The meme coin was noted for rapidly surging to a market capitalization greater than $600 million and then collapsing below $100 million just as swiftly.
What happened to Eric Adams’ $NYC
Part of the reason for the exceptional volatility has been the fact that Adams’ team created a one-sided liquidity pool on Meteora – a DeFi platform used mainly to provide liquidity – that is utilized to pull $2.5 million USDC from $NYC’s liquidity near the market peak and then add $1.5 million after the collapse.
At press time on January 13, the token launch announcement is the last post on Eric Adams’ X account, while the cryptocurrency’s X account made a brief post regarding liquidity shortly before midnight, New York Time:
There has been no official communication since, though former Mayor Adams’ post was graced with a community note warning of a likely ‘rug pull.’
Featured image via Shutterstock
Source: https://finbold.com/crypto-trader-loses-473k-in-20-mins-on-eric-adams-nyc-meme-coin/
